The Ministry of Industry (Kemenperin) believes that the production performance of the footwear industry will fully recover this year. This is in line with the projection of the Indonesian Footwear Association (Aprisindo) which states that footwear production will return to 1.2 billion pairs in 2022. Director of Textile, Leather and Footwear at the Ministry of Industry, Elis Masitoh, said that there will be a flood of orders to the domestic footwear industry this year and 2023. This year, one of the brands added orders to 67 million pairs, and will increase again next year.
"Next year, we will add 100 million pairs, this is only from one of the big brands that controls 60 percent of industrial exports. Other brands are also adding orders to Indonesia," he said, Tuesday (4/1/2022).
Elis continued, the increase in orders was also accompanied by growth in investment, both new and expansion next year.
According to the Ministry of Industry's records, as much as 60 percent of production is intended for the export market, while the remaining 40 percent is for the domestic market.
The domestic market is also expected to be more conducive with the easing of community activities and the start of face-to-face learning in schools.
"With the easing of community mobility, and schools and offices have returned to normal, it is projected that domestic demand will also increase," he said.
Citing data from the Central Statistics Agency (BPS), the performance of the footwear, leather and leather goods industry grew 18.12 percent year-on-year in the third quarter of 2021. Meanwhile, until November 2021, the value of exports rose 27.3 percent to US$ 4.80 billion.